January 02, 2013

IRS FORM 1099 REPORTING for 2012 due *1/15/13*

PLEASE NOTE: This message is intended for chapter/field office treasurers re: 1099 payments made to independent contractors/legal firms outside of headquarters (and not including payments to employees or volunteers).

This is a reminder for services performed for the period 1/1/12 through 12/31/12.

If you have questions, please reply to me (Jean Davis) individually and not the entire list. Thanks!

One of the requirements of year-end reporting is to submit to the national Finance Department a list of individuals (excluding employees and volunteers) and unincorporated companies to whom you have made direct payments totaling $600 or more for services rendered during the calendar year. These services/expenses would include, but are not limited to, all consulting fees, commissions, speaker fees, honoraria or awards, rent payments not paid by headquarters, royalties, permission payments for use of photographs, and any other non-employee compensation.

All payments for legal services, including settlements and reimbursements of expenses, regardless of whether they were provided by an individual, partnership or corporation, must be reported if they totaled $600 or more. We are required to disclose this information to the IRS on separate Form 1099's; a copy of each is sent to the respective individual, partnership or corporation.

This list must be submitted no later than January 15, 2013 in order for Sierra Club National Office to send out 1099 forms by the federally mandated deadline. Failure to comply may result in penalty payments levied by the IRS. If penalties are assessed, these charges will be allocated to the entity that failed to meet this deadline. You may email, fax or send regular mail, but do not miss the deadline or your payees will not be able to file their taxes in a timely manner.

To make it easier to report 1099 info to headquarters at year-end, it is recommended that you track 1099 payments on a spreadsheet throughout the year. To make this easier, we've created a sample spreadsheet for you to use. The spreadsheet is available in pdf format on the Finance area of the Staffnet Site on the extranet, and also in the Clubhouse, under Money/Finance Dept. If you'd like us to email a copy of the Excel version of the file (or a list of 1099-related FAQ's), please contact Jean Davis in AP. You should always get all necessary tax info from the vendor before you issue any payments, as it is often more difficult to reach vendors at year-end to gather any missing info.

If you have any questions about whether 1099 reporting is required for some specific entity activity, please call Accounts Payable for assistance at (415) 977-5514.